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Munson Medical Center in Traverse City is part of Munson Healthcare.

TRAVERSE CITY — Munson Healthcare this week is laying off 31 employees system-wide and leaving another 20 open positions unfilled, according to Ed Ness, president and CEO.

All of the positions are in system services, management and leadership, Ness said. Some of the positions are planned retirements that won’t be filled.

None of the layoffs include clinical staff, he said.

Munson Healthcare has 8,000 employees across the seven hospitals it owns and Kalkaska Memorial Health Center, which it manages.

Ness did not know how many layoffs or open positions affect Munson Medical Center in Traverse City.

There are two main reasons for decreasing the workforce, Ness said. One is a lower census and the other is inflation, which affects both supplies and the ability to recruit and retain staff, he said.

“We want to be in a position where we can invest, not only in our employees, but our clinical facilities and equipment,” Ness said.

Munson spent $30 million last year in wage increases — the largest ever — and needs to continue that to attract and keep its staff, he said.

Recent studies show hospitals throughout the country and Michigan are in similar situations. Ness said one study showed that 53 percent of healthcare systems are losing revenue.

The Michigan Health & Hospital Association, which represents 162 hospitals and 18 health systems, including Munson Healthcare, said the state’s hospitals are projected to spend $1 billion more in 2022 than they did before the pandemic on contract labor — those who are not employed by a hospital — and recruitment and retention expenses.

“We are responding to the same things that are being faced by all healthcare systems,” Ness said. “This is so we can be sustainable for the future.”

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